Backlash Against Netflix Korea CEO for Skipping National Assembly Audit Despite 800 Billion Won Earnings from Song Hye-kyo’s Drama

On October 25, Reginald Shawn Thompson, who serves as the CEO of Netflix Services Korea, failed to attend the audit held by the Science, Technology, Information, Broadcasting, and Communications Committee (STIBC) of the Korean National Assembly. The committee had called upon Thompson to offer insight into matters pertaining to “profits from the Korean market and the reinvestment in K-content,” yet he was absent once more. Instead, Jung Gyo-hwa, head of policy and legal affairs at Netflix Services Korea, represented the company during the proceedings.

Thompson provided an explanation for his absence in a letter submitted on October 14. He stated, “I am part of Netflix Inc.’s legal team based in the U.S. and manage international offices, including those in America and Europe. When Netflix Services Korea was founded in July 2015, I was registered as the corporate representative and handled the initial setup tasks. Since then, I have not been engaged in the operations of the Korean subsidiary.”

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He went on to say, “My understanding of the Korean subsidiary’s operations and the current business landscape in Korea is limited, rendering me unable to provide detailed testimony.”

The STIBC has made an annual request for Thompson’s attendance as a witness during the parliamentary audit, but he has consistently offered the same rationale for his non-attendance. This pattern has attracted criticism, suggesting that Netflix is not fulfilling its obligations in the Korean market despite its significant presence. Last year, the revenue generated by Netflix Services Korea approached 1 trillion won.

In a report on the 2023 audit released in April, Netflix Services Korea reported a revenue increase of approximately 50 billion won over the previous year, totaling 823.3 billion won derived from subscription memberships.

The revenue surge was predominantly driven by the success of Netflix’s original drama “The Glory,” featuring Song Hye-kyo. After its debut in December 2022 and the subsequent release of Season 2 in March 2023, the series gained immense popularity, drawing in a flood of new subscribers in Korea.

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Despite these impressive earnings, Netflix Korea has drawn criticism once again for issuing a letter explaining the representative’s absence from discussions focused on “profits from the Korean market and reinvestment into the K-content market” during the parliamentary audit.

Source: Herald Economics

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